I’ve been perusing some of the C2Star systems and some are getting close to surviving for a year. In any event, besides the ones listed as certified, I’m wondering if anyone has kept track of others that lost their certification but still are doing relatively well?
If you’re smart, you won’t rely on C2 telling you which system to trade. The C2Star certificate is just a guide. There are a lot of systems that are trying to achieve C2Star status and have decent stats and it’s just matter of time before they achieve it. What’s important is the consistency of their trading. For example, two things I look for in a C2Star system, high Sharpe ratio and trades with risk never going above ~1%. The win rate, in my opinion, shouldn’t be considered at all since it’s an utterly worthless metric. The Klarity system is an example of what I consider a consistent, risk-adverse system. I’m not saying it will continue to perform like this forever but you can bet your odds of making money with it is better than most systems here at C2.
What is the C2Star criteria?
Keep in mind that the sharp ratio sees negative and positive volatility in the same light, so it is virtually worthless if the C2 trader is trying to judge the merit of trend-following systems, or strategies that trade deep out-of-the-money options, for example.
It also relies heavily on standard deviation, which is based on the normal distribution curve, a total nonsense since markets (stock, futures, Forex, bond…) are NOT randomly distributed.
Look at systems with high Sharpe ratios. They often have smooth equity curves which is also another factor I look at. Of course, I narrow my search to systems that trade with risk 1% or less. It’s worked for me very well here at C2.